Stats Assignment Question

THE UNIVERSITY OF NEW SOUTH WALES School of Economics ECON1203/ECON2292 Business and Economic Statistics Semester 2, 2012

Major project: Customer Satisfaction survey Outline

The prestigious consulting firm of Dynamic Econometric Consulting Services (DECS) has hired you as an analyst and you have been assigned your first task. DECS has been approached by a mobile phone ring tone provider, Crazy Johnny’s M-Tone. It is a private company solely owned by its chief executive, Johnny Jones. The company’s strategy to grow in the highly competitive and saturated ring tone market is to grab market share by offering the best content available on the market. Its ring tones vary in price, usually by quality and by how recently they were released. The company also offers discounts for customer loyalty. After one year of operation, Johnny thinks that it is time to review how satisfied customers are with content availability of his service and to see what can be done to improve customer satisfaction. Johnny instructed his employees to randomly pick 200 customers who had signed up to Crazy Johnny’s M-tone and his employees then called and asked a few questions. However, he then could not find anyone on his staff with the statistical background or skills to analyze the data and this is when he approached DECS with the following instructions: “I need you to report to me on how satisfied our clients are with the service we provide, with content availability and whether higher client satisfaction translates into increased customer expenditure on our products. In general, I need an overview of my customer base and their usage patterns. When I set up the company, the business plan was based on a number of predictions about customer demand. I assumed that, over a year, they would download 10 ring tones and spend $30. Does your statistical analysis support these assumptions? You have been given the responsibility of providing a statistical analysis of these data and for producing an...